calculate taxable income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 February 2011 Plz solve this qu.
Mrs. radhika received the following amounts during the financial year 2010-11
gross salary 500000
family pension @ Rs. 2000 p.m 24000
income of minor child 6000
accumulated balance in provident fund
of her husband after his death 120000
gratuity received after the death
of her husband 90000
caculate taxable income of mrs. radhika for the assessment year 2011-12.

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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18 February 2011 Hi,
Will get back to you with complete info & workings,

Regards
CA. LOHITH.J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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18 July 2024 To calculate the taxable income of Mrs. Radhika for the assessment year 2011-12, we need to consider all the income sources and deductions applicable under the Income Tax Act. Let's break down each component:

1. **Gross Salary**: ₹500,000
- This is the total salary received by Mrs. Radhika from her employment.

2. **Family Pension**: ₹24,000 annually
- Monthly pension: ₹2,000
- Annual pension: ₹24,000
- Family pension is taxable under the head "Income from Other Sources."

3. **Income of Minor Child**: ₹6,000
- Income of minor children is clubbed with the income of the parent having higher income.

4. **Accumulated Balance in Provident Fund**: ₹120,000
- Provident Fund withdrawal is generally tax-free if withdrawn after 5 years of continuous service. Since it's after the death of her husband, it's considered a lump sum payment under Section 10(12).

5. **Gratuity Received**: ₹90,000
- Gratuity received after the death of her husband is exempt from tax up to certain limits under Section 10(10).

### Calculation of Taxable Income

1. **Income from Salary**: ₹500,000

2. **Income from Other Sources**:
- Family Pension: ₹24,000

3. **Deductions**:
- Standard Deduction: 30% of Family Pension (Assuming she is not receiving any other pension): ₹7,200 (30% of ₹24,000)
- Income of Minor Child: ₹6,000 (Clubbed with Mrs. Radhika's income)

4. **Exempt Income**:
- Accumulated Balance in Provident Fund: ₹120,000 (Exempt under Section 10(12))
- Gratuity received after husband's death: ₹90,000 (Exempt under Section 10(10))

### Total Taxable Income Calculation:

- **Income from Salary**: ₹500,000
- **Income from Other Sources**:
- Family Pension: ₹24,000
- Less: Standard Deduction: ₹7,200

Total Income from Other Sources: = ₹16,800

- **Total Income before deductions**:= ₹516,800

- **Less: Exempt Income**:
- Accumulated Balance in Provident Fund: ₹120,000
- Gratuity received: ₹90,000

Total Exempt Income: = ₹210,000

### Taxable Income= ₹306,800

Therefore, the taxable income of Mrs. Radhika for the assessment year 2011-12 is ₹306,800. This amount will be used to calculate the income tax payable based on the applicable tax slab rates and deductions available under the Income Tax Act.

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